Hi @Darlena,
Please kindly note that since this feature in Teams is powered by Word Online, there are no settings on Teams side which can control this feature to be enabled for all word files.
To my knowledge, I am afraid that in Word Online you may also need to manually enable this feature.
Alternatively, is there a way to change permissions for all members to "Review and add comments only"?
The "Restrict Editing" feature doesn't seem to exist in Word Online.
If you would like to restrict file access to Read-Only in Teams/Sharepoint, you can follow these steps:
In Teams (In Sharepoint the steps are similar):
1.select the file and choose ...>Manage access
2.in the new window set the permissions of team member from the default Can Edit to Can view (read-only)
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